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Oriole, In the follow

Oriole, In the follow

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Oriole, Incorporated decided to liquidate its wholly owned subsidiary, Tiger Corporation. Tiger had the following tax accounting balance sheet. Cash Building Land Total FMV $ 400,000 100,000 300,000 $ 800,000 Adjusted tax basis $ 400,000 20,000 180,000 $ 600,000 Appreciation $ 80,000 120,000 $ 200,000 a. What amount of gain or loss does Tiger recognize in the complete liquidation? b. What amount of gain or loss does Oriole recognize in the complete liquidation? c. What is Oriole's tax basis in the building and land after the complete liquidation?
Transcribed Image Text:Oriole, Incorporated decided to liquidate its wholly owned subsidiary, Tiger Corporation. Tiger had the following tax accounting balance sheet. Cash Building Land Total FMV $ 400,000 100,000 300,000 $ 800,000 Adjusted tax basis $ 400,000 20,000 180,000 $ 600,000 Appreciation $ 80,000 120,000 $ 200,000 a. What amount of gain or loss does Tiger recognize in the complete liquidation? b. What amount of gain or loss does Oriole recognize in the complete liquidation? c. What is Oriole's tax basis in the building and land after the complete liquidation?
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